Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that Broker Keith Baron (Baron) has been accused by investors of engaging in fraudulent misappropriation of their funds. According to records kept by The Financial Industry Regulatory Authority (FINRA), it appears that Baron was employed by Equity Services, INC. at the time of the activity. If you have been a victim of Baron’s alleged misconduct our firm may be able to assist you in recovering funds.
FINRA BrokerCheck shows a final customer complaint on December 14, 2023.
Baron was named a respondent in a FINRA complaint alleging that he made material misrepresentations to investors, who are a married senior couple, in connection with his recommendation of Company A’s stock. The complaint alleges Baron failed to disclose to the couple that he was a consultant for Company A and had a financial stake in their investment as a result of his agreement with Company A. Baron later made additional material false statements to one of the investors in connection with a purported buyback of the couple’s shares of Company A. The complaint also alleges that Baron had an ongoing business relationship with Company A pursuant to a Strategic Consulting Services Agreement. Baron expected to receive compensation and, in 2016, in fact received $284,890 in compensation from Company A. Baron failed to provide prior written notice to his member firm concerning his business relationship with Company A. The complaint further alleges that while still associated with his firm, Baron participated in private securities transactions by recommending and facilitating the couples purchases of 4,348,000 shares of Company A’s common stock for $359,806.16. These transactions were done away from Baron’s firm and were outside the regular course or scope of Baron’s employment. Baron did not provide written notice to his firm of his role in the sale of Company A’s common stock to the couple prior to participating in those securities transactions. Baron also failed to obtain written authorization from his firm to participate in those securities transactions. In addition, the complaint alleges that Baron made false statements orally and in writing to compliance staff at his firm. On his annual certifications to the firm, Baron claimed not to have any undisclosed OBAs. When the couple submitted a complaint about Baron, he misrepresented to his firm the nature and extend of his involvement of the couples purchases of Company A’s stock. Moreover, the complaint alleges that Baron submitted false written statements to FINRA in response to a request for information. Baron provided false information regarding his involvement with the couple’s investment with Company A and misrepresented the nature and extent of his involvement with Company A.